TRAVIS COUNTY DPA PROGRAM

Travis County DPA Program

Down Payment Assistance

 

Travis County Downpayment Assistance Program

Location Served: Travis County, Austin, TX

Provider: Travis County

Approved Lender: PrimeLending

Website

 

The Travis County DPA Program was created to assist homebuyers when purchasing a newly constructed or existing home. The program was designed to provide low and moderate income homebuyers with a 4.00% grant for their down payment. Under the Travis County DPA Program, $17,000,000 is available for mortgage loans.
 

Mortgages

 

Mortgages that qualify for this program include 30-year, fixed-rate FHA-insured, VA-guaranteed or Rural Housing Service (RHS). The interest rate for the mortgage will depend on the current market rates. At closing, a 0.50% discount and a 1.00% origination fee will be paid.
 

Down Payment Assistance

 

Under the Travis County DPA Program, eligible homebuyers will receive a non-payable grant equivalent to 4% of the original loan amount. The non-payable grant should be applied to the down payment and closing cost. See the chart below for further information:
 

Loan Amount Down Payment Amount
$100,000 $$4,000
$150,000 $6,000
$175,000 7,000

 

How Can I Get A Loan?

 

To receive a mortgage under this program, a borrower must:
 

  • Qualify for the Travis County DPA Program
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  • Apply for the mortgage through an approved lender;
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  • Have a purchase contract on a home that meets the program requirements
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What Homes Qualify?

 

Home located within Travis County are considered eligible for the program. Home loans may be made for home located within Austin city limits upon the earlier of notification to the lenders by the Travis County Housing Finance Corporation, or January 1, 2004.
 
The chart below states the home purchase price limitations for one-unit residences (higher limits apply for duplexes, triplexes, and fourplexes):

 

Home Type Non-Targeted Areas Targeted Areas
New Construction Home $205,677 $251,384
Existing Home $175,593 $214,614

 

How Do I qualify?

 

To qualify for the Travis County Down Payment Assistance Program, borrowers must be first-time homebuyers and occupy the purchased property as their primary residence. A first time homebuyer is defined as a borrower who has not owned a home in the past three years. Borrowers that have chosen to purchase a home in a targeted area are exempt from the first time homebuyer requirement. Lastly, homebuyers must meet the income limitations listed in the chart below and the average FHA, VA, or RHS underwriting requirements to prove credit worthiness.
 

Home Type Non-Targeted Areas Targeted Areas
Family of two or fewer $71,109 $85,320
Family of three or more $81,765 $99,540

 

What Are Targeted Areas?

 

Areas that have been underserved in mortgage loan origination in the past and that typically contain a high percentage of lower income households are considered targeted areas. The following census tracts in Travis County (all of which are in the City of Austin) are considered Targeted Areas:
 

  • 6.03, 6.04, 8.02, 8.03, 8.04, 9.01, 9.02,
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  • 18.12, 21.11, 23.04, 23.05, 23.10, 23.12

 

If you purchase a home in a Targeted Area, you should refer to those guidelines listed under “Targeted Areas.” You may call 512-499-2789 to determine if an address is located in a Targeted Area census tract.
 
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (888) 324-9070. You can also email MDM@PrimeLending.com.